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HomeMy WebLinkAbout97-17 Levy Annual Assessment for Fiscal Year 1997-98; Hotels and MotelsORDINANCE NO. 97- 11 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 1997-98 FOR A BUSINESS IMPROVEMENT AREA FOR CITY OF COSTA MESA HOTELS AND MOTELS. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS. Section 1. The City Council of the City of Costa Mesa hereby finds and declares as follows: WHEREAS, the California Legislature in adopting the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code section 36500 at seq.) found that cities are authorized to levy assessments on businesses in order to promote economic revitalization and tourism, create jobs, attract new businesses and prevent erosion of business districts; WHEREAS, the California Legislature found that cities are authorized to levy assessments on businesses which benefit from those improvements and activities; WHEREAS, the purpose of the business improvement area is to fund activities to promote tourism and related tourist events which benefit the hotel and motel businesses within the City of Costa Mesa; WHEREAS, the major hotel and motel businesses within the City of Costa Mesa have requested that City Council commence proceedings under the Parking and Business Improvement Area law of 1989 to establish a hotel and motel business benefit area within the City of Costa Mesa and levy a special assessment to promote tourism; WHEREAS, on July 5, 1995, by Ordinance No. 95-9, City Council adopted a business improvement area known as the Costa Mesa Tourism & Promotion Council; and WHEREAS, on May 5, 1997, City Council adopted Resolution No. 97-40 entitled "A Resolution of the City Council of the City of Costa Mesa, California, on the Intention to Levy an Annual Assessment for Fiscal Year 1997-98 for City of Costa Mesa Hotels and Motels;" WHEREAS, on May 19, 1997, and June 2, 1997, at City Hall, City Council Chambers, 77 Fair Drive, Costa Mesa, California, two public hearings were held concerning the annual assessment for the business improvement area; WHEREAS, on May 19, 1997, and June 2, 1997, City Council heard testimony from the hotel and motel owners on the assessment and no protests were filed or presented at the public hearings which required determination by City Council. WHEREAS, the annual assessment for the business improvement area pursuant to Streets and Highways Code section 36500 at. seq. has the boundaries of the area and the boundaries of the benefit zone within the same area as set forth in Ordinance 95-9 and Exhibit A, attached hereto and incorporated herein by this reference. WHEREAS, on May 5, 1997, the City Council of the City of Costa Mesa approved the report of the Costa Mesa Tourism and Promotion Council and such report has been considered at the public hearing before this ordinance was adopted. Section 2. The City Council of the City of Costa Mesa by this ordinance does hereby levy an annual assessment on businesses within the business improvement area with the name, "Costa Mesa Tourism & Promotion Council," as set forth in Exhibits A and B, attached hereto and incorporated herein by this reference. Section 3. The City Council of the City of Costa, Mesa does hereby further find and declare as follows: (a) The Costa Mesa Tourism & Promotion Council, business improvement area, is subject to any amendments to the Parking and Business Improvement Area Law of 1989; (b) The type or types of improvements and activities to be funded by the levy of assessments on businesses within the Costa Mesa Tourism & Promotion Council, business improvement area, are specified in Exhibits A and B, attached hereto and incorporated herein by this reference, and the improvements to be acquired for the business improvement area are specified in Exhibits A and B; (c) The Costa Mesa Tourism & Promotion Council, business improvement area, assessment shall be levied for one year to pay for all improvements and activities within the business improvement area as specified by this ordinance, except where funds are otherwise available; (d) The method and basis of levying the Costa Mesa Tourism & Promotion Council, business improvement area, assessment is set forth in Exhibits A and B; and Section 2. The City Council of the City of Costa Mesa by this ordinance does hereby levy an annual assessment on businesses within the business improvement area with the name, "Costa Mesa Tourism & Promotion Council," as set forth in Exhibits A and B, attached hereto and incorporated herein by this reference. Section 3. The City Council of the City of Costa Mesa does hereby further find and declare as follows: (a) The Costa Mesa Tourism & Promotion Council, business improvement area, is subject to any amendments to the Parking and Business Improvement Area Law of 1989; (b) The type or types of improvements and activities to be funded by the levy of assessments on businesses within the Costa Mesa Tourism & Promotion Council, business improvement area, are specified in Exhibits A and B, attached hereto and incorporated herein by this reference, and the improvements to be acquired for the business improvement area are specified in Exhibits A and B; (c) The Costa Mesa Tourism & Promotion Council, business improvement area, assessment shall be levied for one year to pay for all improvements and activities within the business improvement area as specified by this ordinance, except where funds are otherwise available; (d) The method and basis of levying the Costa Mesa Tourism & Promotion Council, business improvement area, assessment is set forth in Exhibits A and B; and (e) New hotel and motel businesses within the business improvement area and commenced after the effective date of the ordinance will be exempt from the levy of assessment, as provided in Exhibits A and B. (f) The revenue from the levy of assessments within the business improvement area adopted by this ordinance shall not be used to provide improvements or activities outside the area set forth in Exhibits A and B or for any purpose other than the purposes specified in the resolution of intention, Resolution No. 97-40, and modified by City Council at the hearing concerning the establishment of the area; (g) Business, patrons of such business, and the property subject to the business improvement area assessment, are benefited by the improvements and activities funded by the assessments levied by this ordinance, and in promoting tourism, the businesses assessed benefit from tourist visits to their businesses; (h) The assessment levied by this ordinance shall be collected at the same time and in the same manner as the City of Costa Mesa Transient Occupancy Tax is collected pursuant to the Costa Mesa Municipal Code; (p The City Manager or designee is hereby delegated authority by City Council to enter into the necessary agreements to retain a consultant and/or firm to administer and effectuate the improvements and activities set forth in the budget for the Costa Mesa Tourism and Promotion Council, business improvement area, as set forth in Exhibits A and B; and (j) The Board for the Costa Mesa Tourism and Promotion Council, business improvement area, shall cause a report to be prepared and presented to City Council at the end of the fiscal year for this business improvement area assessment pursuant to Streets & Highways Code section 36533. Section 4. Publication. This Ordinance shall take effect and be in full force and effect thirty (30) days from and after its passage and, before the expiration of fifteen (15) days after its passage, shall be published once in the NEWPORT BEACH -COSTA MESA PILOT, a newspaper of general circulation printed and published in the City of Costa Mesa, or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be posted in the office of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and within fifteen (15) days after adoption, the City Clerk shall cause to be published the aforementioned summary and shall post in the office of the City Clerk a certified copy of this Ordinance together with the names of the members of the City Council voting for and against the same. ((�� PASSED AND ADOPTED this �4day of 1997 ATTEST 7, Deput ity Clerk A' the ity of Costa Mesa APPROVED AS TO FORM: City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE 1 ss CITY OF COSTA MESA 1 I, MARY T ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Ordinance No. 7- Iq was introduced and considered section by section at a regular meeting of the City Council held on the 19th day of May, 1997, and thereafter passed and adopted as a whole at a regular meeting of the City Council held on the 2nd day of June, 1997, by the following roll call vote: n AYES. 13-UFFR IMONR1-1a+,1 �Ckso')l e6am� 5 NOES. IVU N l: ABSENT NJONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 3rd day of June, 1997 T. Deputy City C rk and ex -officio Clerk of the City Council of the City of Costa Mesa Exhibit "A" The BIA benefit zone encompasses the entire City of Costa Mesa boundaries. It is anticipated that the entire City including businesses and residents will benefit from increased revenues generated by the activities of the BIA. The following businesses will be included in the business improvement area which is established pursuant to Streets and Highways Code Section 36500 at. seq., the businesses commonly known as: 1 Countryside Inn and Suites Property Address: 325 and 345 Bristol Street, Costa Mesa Business Owners: Bruce Ayers 1817 Westminster Avenue Newport Beach, CA 92660 Donald Ayers, Jr 506 Via Lido Nord Newport Beach, CA 92658 Property Owner Homes by Ayers 355 Bristol Street, Suite A Costa Mesa, CA 92626 2. Residence Inn - Costa Mesa Property Address: 881 Baker Street, Costa Mesa Business Owner, Residence Inn by Marriott 1 Marriott Way Washington DC 02258 Property Owner Marriott Residence Inn LTD Partnership 10400 Fernwood Road Bethesda, MD 20817 3. Red Lion Inn Property Address: 3050 Bristol Street, Costa Mesa Business Owner Raymond H. Bingham 400 Main Street Vancouver. WA 98663 Property Owner- Red Lion Inn - Costa Mesa P.O Box 1027 Vancouver, WA 98666 4. Holiday Inn Property Address: 3131 Bristol Street, Costa Mesa Business Owner• Linquist and Craig Hotels Property Owner Abbot B. Lipsky c/o California Inn Management, Inc. P 0 Box 688 Lawrence, KS 66044 5. Westin South Coast Plaza Hotel Property Address: 668 Anton Boulevard, Costa Mesa Business Owner South Coast Westin Property Owner Secon Properties c/o South Coast Plaza Hotel 668 Anton Boulevard Costa Mesa, CA 92626 6. Wyndham Garden Hotel Property Address: 3350 Avenue of the Arts Business Owner Amgreen Heritage Hotel Partners Ltd. Property Owner, 31200 Via Colimas, Suite 202 Westlake Village, CA 91362 7. Marriott Suites Property Address: Business Owner Property Owner 500 Anton Boulevard J W Marriott, Jr Marriott Suites, LTD 1 Marriott Way Washington, DC 20058 Exhibit "B" ANNUAL REPORT FOR FISCAL YEARS �4 7&�9� and Multi Fascinatinje!" Noso Submitted by: THE COSTA MESA TOURISM AND PROMOTION COUNCIL April 29. 1997 l v MIR;70�fo Multi Fascinatinje!" Noso Submitted by: THE COSTA MESA TOURISM AND PROMOTION COUNCIL April 29. 1997 Multi Fasoin.'' II�� I 1 y�(�/ t i Osl Costa Mesa Tourism 777& Promotion Council P0. BOX 5071 • Costa Mesa, CA 92628-5071 • 800-399-5499 April 28, 1997 The Honorable City Council City of Costa Mesa 77 Fair Drive Costa Mesa, CA 92626 Dew Council Members: Thank you for the opportunity to form the Costa Mesa Tourism and Promotion Council. Under the provisions of the Business Improvement Area (BIA), I submit for your approval the annual report of the CMTPC. The "virtual bureau' concept has been most effective. The seven general managers and the Honorable Gary Monahan and City Manager Allan Roeder have diligently met regularly without compensation to further the image and economic development of Costa Mesa. The required contents of our annual report is detailed in Section 36533 of the Streets and Highway Code. The format is as follows: I. Any proposed changes in the boundaries of the Business Improvement Area or in any benefit zones with the area. The Advisory Board recommends that the entire city continue to be included in the benefit zone. Further, the Advisory Board recommends that the number of properties included in the boundaries remain the same. If additional properties wish to participate, they are invited to attend meetings the year before assessment, be in good standing with the City of Costa Mesa and meet certain AAA quality standards. The seven major hotels will continue to be assessed the 1% levy on the sale of hotel overnight guest room stays IL The improvements and activities to be provided for the Fiscal Year. The Advisory Board recommends that the 1% assessment levy continue to be used to fund similar local tourism and promotion activities. Member Hotels Red tion Hotel/orange County Airport • The Westin South Coast Plaza • Country Side Inn & suites • Costa Mesa Manion Sums wyndbam Garden Hotel -orange County Airport • Holiday Inn COAG Me Cnauge County "n • Residence Inn by Martina e iaw rm u.o m.r n n®wa, ria Page Two CMTPC During the second year, the CMTPC has focused on awareness of Costa Mesa as a destination. We changed our emphasis from an advertising firm to a public relations firm. We have accomplished or are in the process of carrying out the following projects • Meeting Planner International — Hosted a breakfast to emphasize the advantage of holding meetings in Costa Mesa. • 8004 Hotline — Contracted a service to answer with live operators. Thev answer questions about Costa Mesa and mail out brochures. • Calendar — Established an event calendar for significant art and cultural events in Costa Mesa as well as important expositions at the Orange County Fairgrounds • KABC/KTZN — Producing radio "advertorials" with Melody Rogers on KABC's "Vacation in Your Own Backyard" campaign. The ads will air June and July touting the arts, shopping, central location, Orange Countv Fair and more • Airport Contracting for dioramas in John Wavne .Airport to raise awareness of Multi - Fascinating Costa Mesa to all travelers to the area. • Vienna Philharmonic Orchestra — Presented a proclamation and key from the City of Costa Mesa to the Orchestra following their concert in the Performing Arts Center. • Partnership — Participating with the cities of Huntington Beach, Newport Beach and Irvine as Southern California Coastal Resorts, who hosted a press tour May 1-4, 1997 • Web site — Producing an enticing displav of Costa Mesa s amenities on the current city s site. • Video/Photography — Producing a complimentary video and additional photographs of the city to use with press releases and the web site. • Press Release — Aggressively issuing press releases on a national distribution basis that highlights Costa Mesa's qualities. • Amenities Designing and updating new and current promotional items. • Summer campaign — Producing one final media campaign to attract visitors to Costa Mesa this calendar year. Page Three CMTPC III. An estimate of the cost of providing the activities for the fiscal year. The estimated amount of the assessment to be levied against the businesses for the fiscal year. The amount of surplus or deficit or revenue carried over from the previous fiscal year. The advisory board has prepared the following financial overview which details fiscal year 1996- 1997 and the proposed fiscal year 1997-1998: EXPENSES Media Campaign $205,790 Yew 2 Year 3 30,000 0 FY 1996-97 FY 1997-98 REVENUES Brochures & Collateral Material ActfPml Proiected Trade Show Booth & Representation July 15,000 $31,890 $33,485 August TOTAL 36,107 37,912 September $39,482 37,949 39,846 October 33,027 34,678 November 35,451 37,224 December 30,367 31,885 January 37,125 38,981 February Est 33,000 34,650 Much Est 33,500 35,175 April Est 28,000 29,450 May Est 30,000 31,450 June Est 35 000 36350 $401,416 $421,487 EXPENSES Media Campaign $205,790 $270,000 Video Production & Distribution 30,000 0 Media Relations & Familiarization Trip 85,826 98,000 Brochures & Collateral Material 16,369 50,000 Trade Show Booth & Representation 8,646 15,000 Administrative & General Expenses 15303 20y00 TOTAL $361,934 $453,000 Year -End Surplus $39,482 $7,969 Page Four CMTPC Budget Expense narrative detail for FY 97-98: Media Campaign: Creative Development and Media Buy A Campaign will be developed which will continue to establish the positioning and name recognition of Costa Mesa as an attractive destination providing desirable amenities, value and easy accessability These campaigns would be utilized in key feeder markets of leisure travelers to Orange County with emphasis on shopping, attractions, cultural activities, holiday and special events. We will also review support type advertising with travel agents and meeting planners. ESTIMATED FY '97-'98 EXPENSE - $270,000. Media relations and familiarization trips We plan to continue to work with our public relations firm and gain national exposure through press releases and special events. We also plan to hold a familiarization trip for travel agents and/or press. This amount includes the monthly retainer fee for our public relations firm. ESTIMATED FY 97-98 EXPENSE - $98,000 Brochures and Collateral Materials We plan to update our current brochure with additional photographs and change of names of member hotels. These brochures continue to be distributed to meeting planners, travel agents and conference attendees. ESTIMATED FY 97-98 EXPENSE - $50,000 Trade Show Booth and Representation We plan on continuing to produce promotional materials and participate in local trade shows and have sufficient display materials for distinctive presentation. ESTIMATED FY 97-98 EXPENSE - $15,000 Administrative and General Expenses We plan on continuing to have our Answer Network and brochure distribution facility We also anticipate additional inquiries due to our press releases and advertising campaigns. This category includes our accounting fees and insurance. ESTIMATED FY 97-98 EXPENSE - $20,000 Page Five CMTPC The entire advisory board has supported and enthusiastically worked for the success of the CMTPC. Advisory board members Gary Monahan and Allan Roeder added their unique perspective and eminent assistance. We appreciate the opportunity given us by the City Council to establish the Tourism and Promotion Council and seek continued support. Respectfully, ,,ten` did' Emmett Steed, President Costa Mesa Tourism and Promotion Council ES:mh PROMOTIONAL CAMPAIGNS Multi Fmcinating!' Qiv0'es, Costa Mesa Tourism A Promotion Council P 0. Box 5071 • Costa Mesa, CA 92628-5071 •800-399-5499 KABC - Radio Costa Mesa Tourism and Promotion Council :60 June/July 1997 P-ss-tt! I've got a secret It's a great weekend getaway nestled between LA and San Diego. It's a hideaway cozy enough for a romantic weekend, or an activity -filled family trip. 20 minutes from Disneyland, and close to the beach, it's home to superb hotels, award-winning restaurants, golfing galore, day spas, performing arts, and shopping for days!!!! What is this multi -fascinating mecca? ...Are you ready? ... It's Costa Mesa! That's right - Costa Mesa! You've probably buzzed by on the 405 Freeway, but never thought of staying. Think of this - shopping at South Coast Plaza, Crystal Court, Triangle Square, the LAB: Anti -Mall and Metro Point South Coast; terrific restaurants to suit every taste, the Orange County Performing Arts Center, South Coast Repertory Theater, art galleries - the list goes on! Why not visit Southern California's best -kept secret? Make Costa Mesa your next weekend destination. Call 1-800-399-5499 for details. That's 1-800-399-5499 Member Hotels Red tion Hotel/Orange County Auprt • The Westin South Cues[ Plan' Country Side Inn 9. Suites • Cosm Mesa Marriott Suites Wyndham Garden Hotel -Orange County Atrpon • Holiday Inn Costa Mesa/Omnge County Airport • Residence Inn by Marriott ennmr®weno>n.�a California's "Must See" bights (NAPS)—One of the boot -k -pt setas in California is the city of Costa Mesa, in Southern Califor- nia. Located between Huntington Beach and Newport Beach—end about midway between Los The db tions and ping and restaurants to suit every tests. The amhinatim of metro- politan excitement and baeuh-town ambiance books" vialters from ssulmd theMerid. A range of quality hotels, including the Doubletree Hotel/ Creep County Aiiyort (formerly the Red lose Hot. , The Westin South Coast Pias-. CArutry Side Inn As Suits-, the Costa Mesa M-.r(ek4 Suites, Wvudham Oar - County Airport, and the Resi- dence Inn by Marriott, offer unparalleled accommodations. Here ma tips on what to sea and do when visiting. You might start with a night at the theater. Spjoywmid—OwnW entertainers and musical. dace - and opera productions at the in- tereatimmily-aeolatmed Orange County performing Arte Center, which a'Cemtly hated the Pram Pia-Himmenic Orchestra in om of the orchesta'a two U.S. venues. Or experience contemporary dra- ma at the Tony Award-winning South Coast Repertory Theater across the stmt. The city is also home to many fine art and phdn- raphy generics. The bdettutlona% aeermee Crimps Ginty Performing Arts Center to located In Costs Ness, cadtamla. Per those wis" to "shop till they drop; coats Mesa offers an exciting variety of shopping deed- ned®s. Far example. with over 9 million square feet, the elegant South Cent Placa is an indom/ecb door retail and dining osater that attracts visitors, royalty Ind rdetaities from around the world cad ohms a range of rheicee for all testes sad desires. These wanting some much. den-ved pampering as find it at the coca's gee day span. The city's moderate climate, em,W worldwide, banner; at about 70"F. for most of the year, making Por a great day at the beach, golf- ing, or visiting other Southern chubmis attractions - Free Brochure For a free brnehure about visit- ing Costa Mee&, call toll fres 14W -999-U99. l P a N anplxRflM7�er (^FIgMUta p n Fa Cetl��l�vpH�PY ��e �UM1>ISL.ryi,MvlfFa Je XeY�VwISgwLW PM wYmnWMMtlW imim wnM�^mwINYYnIIo tlul m xMY IMO�mm Caa. Rw�•�[„ lm,�n[RmL e m.n�.el:i`m. con. Me.. 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W bd v W m wgwuau vII •(pa,ae4MMel we w,mm,n6 •Vllfy ^RIMem^m M1w Weugmtlle Te Gmv)SMelm(J25 anW prtq ¢,I,nllw W VCAL'xvyyywe Mre pamxl M, (oux Omar hLt plm mm�r•vtl.^Am. m ImbYY ImQ151 S hwLG=. OIQ 551�]N](a nep IM am M1®,h ReC Wn Nael T,e poem mpm• Arve rtaenuY Ma rtwavea n,e w.(w • ymlaw„+e wp wA ¢m nC,aM Imw.,wwq (mem, w, wv ade,. ewxw MgYnv Lry•6n,wv. Rseune¢ .N . CESSNA FIBERGLASS PARTS Excellent Value! "monry dwLguamnttt' can Foe Catalog M -n .65MSt A£i a �o . ter an v improve amu ream ariin Center and improve stints, parking and utilities However, the company has agreed to guarantee about half of the nearly $400 million in bonds that Anaheim must issue to fund the lion's share of the improvements. The HEARD ON tranche of debt, which means a slab or a slice. THE BEAT On to the chmrette. That's Is TOURISM Disney -speak for a brainstorming session that hatched the idea for a By Marla Dlekaman Califomia-themed park. For the uninitiated, chorreffe literally means a handcart or wheelbarrow. It came to symbolize a frenetic creative push back in the 19th century, when students at the &ole des Brow, Art$ to Paris would rush to toss their final projects onto a charrette used by the school to collect work for grading. As part of the expansion, Disney plans to build an esplanade, which a really lust another way to say promenade. The giant, tree -tined public space will be constructed between California Adventure and -Disneyland. Patrons will be able to purchase tickets or stroll to any number of shops and restaurants planned along the corridor. Quasimodo and friends should feel right at home. Costa Mesa Invites Arizonans to Cool It CoslaMesa in July isn't exactly the epitome ofcool, unless you happen to live in Arlmna The Costa Mesa To urima and Promotion Council has cooked up a 60-secoZn ratio spot aimed at the PTaenix mazket that urges the sweltering masses to chill out with visit to Costa Mesa IVs just the latest promotion by the Costa Mass group, one of the state's first"virtual tourism bureaus." The council was formed in August 1995 after several Costa Mesa hotels worked with the city to form a Business Improvement Area and agreed to devote a portion of their room revenue—$275,000 in the first year alone—to fund the project. The council has no staff or offices and few administrative costs. It's run by a volunteer alliance of hotel general managers who have funneled virtually 100% of the budget into promotion and advertising. "We have found a most cost-effective approach to promoting the city by eliminating the, need for executivesmf(4nd related and has set up CA, be as , at m -w ¢mq na !!11(11161 t,IM 'tl�l Bacoms Costa Mesa makes case as travel base 'M _ I,.<OYWY EYEIIISt♦ v Yeu'va Jr.n ua a Cwu mesa n[nla urm [M1< Cn Inua nolWhx map anPna t tyo uu. -' n��`e u epee anu..e.n r cnr�Jm,a uhb WeA Y Wt14 Caau Yeas noppen wno wam vuvn a MI for Sounem Callfornu i(M be 1 bLL You'n rok n[ M. in the winter Cams Cuwi a Io-Wuaraurt . P tyJh. la Maub(W IYpSu %U.- CJmm�u ogle Sul n0. nm. CJlror trr`rati�arr.� . :oeathe Na uMn �iv.4....amw nen cIM .ba<Y yW Hower.C"m � • ap..- •`w+. s w "'m f..da''. t,, op„, •,in:altJroe neear�.a won w-:-=.,=Yubuln l _ m M yuv nulebh W a v� 000< w nm era m<aa aro..m .a cwu Yevi r •Ian vark,- a